Twitter Spurs New Technological Ecosystem

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Nov. 6 (Bloomberg) -- Roger Lee, general partner at Battery Ventures, explores the ecosystem that has sprung up around Twitter, the steps being taken to transition into a mature public company and what this means for the valuation of tech companies. He speaks on Bloomberg Television’s “Bloomberg West.”

Ones that could go public themselves.

Here is more on his take.

It is a global -- mobile five form.

There is high levels of engagement.

People are communicating with friends or family.

As i said before, the most interesting story is the enterprise ecosystem building up around it.

Businesses are starting to embrace it in a meaningful way.

I would add zynga to that list.

For sure.

That was the consumer side to build a big gaming business.

There is all of these enterprises people do not pay attention to and they created just as much equity valley.

In the case of some, it was over $1 billion in total.

We see it happening in twitter.

Sprinkler is a batter a portfolio company.

Also who'd sweet as well.

I do the same thing, helping business -- hoot suite as well.

They do the same thing, helping businesses use it as a tool to make the business operate more efficiently.

When you look at investments in your role as a venture capitalist, when you see something like a twitter, maybe you would choose not to get involved because the valuation is not right.

So do you look for other companies that will benefit from something like that?

We do.

It can be its own platform.

Usually we can build a business around it.

It does not always happen.

Every once in a while you will see that.

How did you do research to find these businesses?

A lot of hard work.

We are always talking to entrepreneurs to ask questions.

We are trying to figure out if a platform emerges, what of the some of the outcomes of that.

What of the problems they create and how can we find entrepreneurs to solve those problems.

You have been involved oh with many ipos over the years, it is a tumultuous time.

Putting your nose to grind and not paying attention.

That is completely untrue.

I wonder from the venture capital side, what is going on with those involved in twitter?

Are they putting dollar signs next to things yeah, -- things?

I do not think so.

For them in this part of a much longer multi-year journey.

A lot of them vester's have been involved -- a lot of these investors have been involved a long time.

They look at this as an important event in the history of the company.

It is not the end goal.

It is one step along the way.

Would they be doing any kind of work on twitter?

What kind?

It depends in their role in the company.

It has to assemble the right board.

It has to but together compensation committees and audit committees, governance committees.

Each of the board members are assuming some of those roles in helping the business mature to a public organization.

I wonder, when you look at the valuations of some of these deals, the facebooks, i think facebook is in its own category.

But let's say twitter and look at what the net and groupon and some big, expensive ipos, you look at those value a in and what is your reaction to them?

-- do you look at those valuations and what is your reaction to them?

I remember when somebody invested in facebook at $10 million and everybody thought it was crazy.

He has made more than 10 times on his investment.

Companies are building these global platforms.

Other companies certainly are not.

That was the general partner it is a global -- mobile five form.

There is high levels of engagement.

People are communicating with friends or family.

As i said before, the most interesting story is the enterprise ecosystem building up around it.

Businesses are starting to embrace it in a meaningful way.

I would add zynga to that list.

For sure.

That was the consumer side to build a big gaming business.

There is all of these enterprises people do not pay attention to and they created just as much equity valley.

In the case of some, it was over $1 billion in total.

We see it happening in twitter.

Sprinkler is a batter a portfolio company.

Also who'd sweet as well.

I do the same thing, helping business -- hoot suite as well.

They do the same thing, helping businesses use it as a tool to make the business operate more efficiently.

When you look at investments in your role as a venture capitalist, when you see something like a twitter, maybe you would choose not to get involved because the valuation is not right.

So do you look for other companies that will benefit from something like that?

We do.

It can be its own platform.

Usually we can build a business around it.

It does not always happen.

Every once in a while you will see that.

How did you do research to find these businesses?

A lot of hard work.

We are always talking to entrepreneurs to ask questions.

We are trying to figure out if a platform emerges, what of the some of the outcomes of that.

What of the problems they create and how can we find entrepreneurs to solve those problems.

You have been involved oh with many ipos over the years, it is a tumultuous time.

Putting your nose to grind and not paying attention.

That is completely untrue.

I wonder from the venture capital side, what is going on with those involved in twitter?

Are they putting dollar signs next to things yeah, -- things?

I do not think so.

For them in this part of a much longer multi-year journey.

A lot of them vester's have been involved -- a lot of these investors have been involved a long time.

They look at this as an important event in the history of the company.

It is not the end goal.

It is one step along the way.

Would they be doing any kind of work on twitter?

What kind?

It depends in their role in the company.

It has to assemble the right board.

It has to but together compensation committees and audit committees, governance committees.

Each of the board members are assuming some of those roles in helping the business mature to a public organization.

I wonder, when you look at the valuations of some of these deals, the facebooks, i think facebook is in its own category.

But let's say twitter and look at what the net and groupon and some big, expensive ipos, you look at those value a in and what is your reaction to them?

-- do you look at those valuations and what is your reaction to them?

I remember when somebody invested in facebook at $10 million and everybody thought it was crazy.

He has made more than 10 times on his investment.

Companies are building these global platforms.

Other companies certainly are not.

That was the general partner at battery ventures with cory johnson.

Still ahead, why the former ceo

This text has been automatically generated. It may not be 100% accurate.

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